R. Joseph Ritter Jr., Financial Advisor
@RRitter
Liability insurance protects you from claims against you. So the amount of insurance you need is equal to the financial protection you want and can afford. It's tough to give you a certain amount without knowing your specific situation. It's a good idea to sit down with a financial professional to assess your financial picture.
Scott W. Johnson, Manager and Principal Broker Agent
@Marindependent1
Everyones situation is different. But as a general rule of thumb, you should attempt to get enough coverage equal to some version of your net worth. In other words if you are worth about $2 million dollars, than consider purchasing a $2MM umbrella. This combined with what you can afford should help get most people the right amount. Generally speaking liability and Umbrella insurance is not too expensive.
The other way to look at it is to review aspects of your life that may increase your risk of personal litigation: What are your hobbies, do you have a dog, kids, do you or your spouse drink, do you host parties, do you have pool, trampoline, or any other activity at your house that people can get injured doing? Do you sit on any non profit boards? Do you speak your mind often, get in heated debates? There are other risks to consider as well.
Also, If you are extremely affluent, you may want to speak with an attorney that can help fine tune this for you.
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